New food traceability rules kick in next year, pushing grocers to tackle financial challenges and supplier issues. If they don’t comply, they could face legal consequences.
Starting January 20, 2026, retailers must follow section 204 of the Food Safety Modernization Act (FSMA). This law aims to enhance traceability in the food supply chain, making it easier to identify contaminated products quickly.
Understanding these requirements is crucial for retailers. They carry some legal responsibility under the new rules, as highlighted by Derek Hannum, chief customer officer at ReposiTrak, during a webinar hosted by the National Grocers Association.
Here’s what grocers need to know as the deadline approaches:
Key Points for Grocers
FSMA 204 mandates traceability for certain foods listed under the Food Traceability List (FTL). This includes items like soft cheeses, sprouts, tomatoes, and shellfish. Anyone involved in the manufacture, processing, packing, or holding of these foods must keep detailed records. They must provide this information to the FDA within 24 hours upon request. Records must include Key Data Elements (KDE) as products move through the supply chain, and they must be kept for two years.
Some KDEs, like the traceability lot code, can be printed on labels, while others, such as the receipt date of the food, won’t be. Retailers with central kitchens that prepare food for multiple stores need to create a new traceability lot code for each item processed.
If suppliers can’t provide this data electronically, grocers need to find ways to manually collect the required information. It’s essential to start reviewing case labels and informing suppliers about lot code requirements now.
Implementing traceability can be thought of in three phases: onboarding suppliers, managing traceability at distribution centers, and tracking at the store level.
Changing Views on Traceability
Traceability in food has shifted from merely meeting regulations to becoming a competitive edge. Major retailers like Kroger and Walmart have implemented advanced traceability programs that surpass FDA requirements. According to Randy Fields, CEO of ReposiTrak, these retailers are now setting industry standards.
Kroger has committed to a traceability policy that goes beyond the current FSMA requirements by including all food products entering its facilities. They aim to avoid future discrepancies if regulations change.
Customer expectations are also driving improvements in traceability. Consumers want transparency regarding where their food comes from, and grocers are responding to these needs.
Addressing Challenges
Grocers should be aware that suppliers vary in their technical capabilities for traceability. ReposiTrak recently joined forces with Upshop to help grocers access necessary supply chain data. Kroger is also developing a central system to collect data from multiple sources.
It’s important for grocers to account for every step in the supply chain. Overlooking the distribution phase can complicate compliance, as Cosby from Kroger pointed out. Understanding and recording each touchpoint is essential.
Questions remain about maintaining consistent information sharing with the FDA. Grocers must work with regulators to clarify any uncertainties in the new rules and ensure processes are visible, especially when discrepancies arise.
